Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506893
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 11CQ
To determine
Explain the oligopolistic collusion
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The real costs of transporting goods and people have declined substantially over time. What impact do lower transportation costs have on the market power of individual producers? Has the internet had a similar effect? If so, how?
Brazil
Mexico
Soya per unit of labor
0.05
0.02
Corn per unit of labor
1.25
1.40
At what relative “price” of soya to corn would Mexico receive all of the potential gains from trade with Brazil?
If production in both countries occur under conditions of perfect competition, and if the wage rate is $2 per hour in Brazil and $5 per hour in Mexico, using your knowledge of microeconomic theory, how would you go about calculating the price of corn in both countries?
Explain at least two reasons that, according to economic theory, might prevent business from changing consumer prices more frequently.
Chapter 11 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
During 2007, as oil and gas prices continued to increase, a growing number of Americans called for the United States to become less reliant on Middle-Eastern oil. Would it make sense for the United States to try to become totally self-reliant in the production of oil? Why or why not? Please explain
arrow_forward
explain at least two reasons that, according to economic theory, might prevent business from changing prices more frequently.
arrow_forward
A decrease in the productivity of a resource will decrease the demand for that resource. true or false?
arrow_forward
Michael owns a strawberry farm in central California and is deciding how many strawberries to supply this month. Which question appropriately applies the cost-benefit principle to the supply decision?
Is the price Michael gets for the extra bushel of strawberries at least as large as the marginal cost?
What is the fixed cost of production for Michael's strawberries?
If Michael was not producing strawberries, how else could he use his resources?
Is Michael "holding all else constant" when making this decision?
arrow_forward
What is one industry, firm, or product that has disappeared from the market as a result of allocative efficiency and creative destruction and replaced by another industry, firm, or product? And what are some pros and cons?
arrow_forward
MODIFIED TRUE or FALSE. Write "T" if the given statement is TRUE, correct and valid. Write "F", if otherwise. If your answer is either "T" or "F" explain, why is it true or false. Cite a theory, use a formula or graph to support your answers.
1. In a perfectly competitive market, there are many buyers and sellers and no can influence the market price or quantity.
2. Economic model is an abstract representation of the "unreal world" phenomena that one wishes to examine. 3. Economic model can be expressed to an equation holding other variables to be constant.
4. Independent variable or the explanatory variable (in an economic model) is the variable that provides the explanation for any change(s) in the response variable.
5. Points below the Production Possibility Frontier or PPF are the choices of the society that are infeasible due to its limited resources.
6. Law of demand asserts that quantity demanded and its own price is directly related.
7. Law of supply states that…
arrow_forward
MODIFIED TRUE or FALSE. Write "T" if the given statement is TRUE, correct and valid. Write "F", if otherwise. If your answer is either "T" or "F" explain, why is it true or false. Cite a theory, use a formula or graph to support your answers.
1. In a perfectly competitive market, there are many buyers and sellers and no can influence the market price or quantity.
2. Economic model is an abstract representation of the "unreal world" phenomena that one wishes to examine.
3. Economic model can be expressed to an equation holding other variables to be constant.
4. Independent variable or the explanatory variable (in an economic model) is the variable that provides the explanation for any change(s) in the response variable.
5. Points below the Production Possibility Frontier or PPF are the choices of the society that are infeasible due to its limited resources.
arrow_forward
explain whether there has been a market failure, what type of failure, and what measures might solve it,
You should consider:
the advantages and disadvantages of any solution
whether doing nothing might be the best solution
the concept of efficiency.
The only large employer in a local area pays its employees a low rate, and working conditions are poor. There is high unemployment in the area
arrow_forward
Answer the following questions.
How has an Act of the United States Congress increased U.S. production of corn?
Why would you expect an increase in the quantity of corn produced to raise the opportunity cost of corn?
Why did the cost of producing corn increase in the rest of the world?
Is it possible that the increased quantity of corn produced, despite the higher cost of production, moves the United States closer to allocative efficiency?
arrow_forward
In economics, the operation of the competitive market model (Perfect Competition) produces efficient uses of resources and meets people’s needs and wants; in other situations, markets fail to satisfactorily use resources efficiently and meet the needs and wants of people. Discuss, demonstrating your understanding of how, why and when markets work well or fail and what can governments do when markets fail. Use diagrams to help your explanation and argument.
arrow_forward
TRUE OR FALSE.
*If the profitability of our product improves, and we would like to expand our production, we can increase our output more in the long run than in the short run.
arrow_forward
How do markets operate to bring product into existence?
How does that relationship affect supply and demand for the various markets involved?
In what ways has the change in supply and demand affected the market?
What enabled the many participants in the production of this product to cooperate, and how has this affected the production of the product?
arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning